Here’s why Shiba Inu price is soaring

Shiba Inu made a strong comeback on September 26, reaching their highest level since July 27 as Shibarium prices increased.

Shibarium fees are increasing

The second-largest meme coin, Shiba Inu (SHIB), jumped to $0.000017, marking a 1,522% increase, as on-chain data showed Shibarium’s fees rose to $438, significantly higher than this month’s low of $27.

Shibarium is a layer-2 network launched by the developers of Shiba Inu. A big increase in fees indicates that the network is seeing more activity. Indeed, data from Shibariumscan shows that the number of new transactions increased from a low of 2,186 this month to 8,025 on September 26.

Shibarium transaction fees | Source: Shibariumscan

Higher Shibarium fees are also important because a portion of the BONE revenue collected is converted to SHIB and then burned. Data from Shibburn shows that Shiba Inu’s burn rate has increased by 640% in the last 24 hours, reaching 5,555,360 tokens.

The Shiba Inu rally also coincided with the ongoing meme coin rally. Most meme coins have rallied over 5% in the last 24 hours, bringing their total market cap to $50.9 billion. Pepe (PEPE) is up 7.5%, while Mog Coin is up 14%.

Popcat (POPCAT) is also up 15% in the last seven days, pushing its market cap above $1 billion. Meme coins typically exhibit some degree of correlation.

Additional data from Nansen shows that Shiba Inu has had a net outflow of 41 million tokens in the last seven days. As a result, the total supply of tokens on exchanges has increased by 25.48%. The outflow of tokens is a bullish indicator that many investors are holding their coins in their personal wallets.

Shiba Inu breaks through major resistance Shiba Inu price chart | Source: TradingView

Shiba Inu’s rally was also driven by positive technical indicators as it formed a double bottom chart pattern and climbed above the neckline at $0.000016, the swing high set on August 24.

SHIB also broke above the descending trendline connecting the swing highs since July 16. Additionally, the Relative Strength Index continued to rise, suggesting increasing momentum.

This price action suggests that the token is likely to continue its upward move as the bulls target key resistance at $0.00002, the July high.